It may be tempting to stock up your shop with as many products as possible. However, the right approach to effective selling is more nuanced than that. The right selection of products offered is an essential factor in deciding the success of a store. Whether you are new to retailing or are already an established retailer, you should always be identifying new ways to boost your sales performance. By providing customers with the right product at the right time and place, you can vastly propel the growth of your store. Read on to learn about why you should select the right product and inventory.
Retailers can increase the demand for products and the number of paying customers simply by improving and changing the product selection. Having the right products makes it easier for the customers to identify and find the product or something similar enough to meet their needs. Improving the chances of customers finding the product they want also increases the chances that the customer would make a purchase. In addition, offering a good product can entice customers into buying something they were not initially looking for. This creates a demand for your products and increases sales levels.
Shapes Your Store’s Image
Product and inventory selection is especially important as it decides the image of the store and the impact it has on its customers. Your selection of products will inform your customers on the type of store you have and will in turn attract the type of customers who are drawn to that particular image. If you are targeting young single women, make sure that the products you offer are of value, new, and trendy. Adjust your product selection according to the type of customers you want to attract and sell to. The product offering defines the store and its customers.
Saves Costs and Reduces Loss
According to the Harvard Business Review, more isn’t always better. Customers often only enter a shop to buy specific items while practically ignoring the rest. A more focused selection of products that satisfies the customer’s wants and needs improves their buying experience. This will allow for more stock and inventory to be moved out quickly as customers can find what they want and buy them. This also makes for a more efficient shop operation and saves cost as less space is being held up by slow-selling products and less unwanted merchandise is being thrown away.
Potential for Cross-selling and Upselling
A good practice is to offer products that bring in regular customers as this opens up the opportunity for the customer to buy additional products that they originally did not seek out. This potential for impulse purchases can add up and substantially increase sales made. This cross-selling strategy works better when you offer essential products that the customer needs to purchase regularly. A similar but different benefit of a good product selection is the ability to upsell. If you offer a higher quality version of a product that the customer wants, they might purchase it on special occasions such as promotions or discounts. This can cause the customer to realize the superiority of the new product and replace the lower value one, increasing sales in the long term.